Budget

Outgoing-House Majority Leader Steny Hoyer said Democrats are prepared to work closely with the incoming GOP majority on efforts to bolster job creation and rein in deficit spending.

But the Maryland Democrat also warned that his caucus is prepared to fight any proposals that threaten those goals.

“We will work with them when we are accomplishing the job-creation objectives and the deficit-reduction objectives,” Hoyer told reporters in the Capitol. “However, they will find us a loyal, but focused and tenacious opposition when we are doing things that we think undermines our economy and explodes the deficit.”

Activists worry the president will strike a deal with Republicans on Social Security to avoid a default on the debt.

Republicans must decide whether to forge a deal with the president or take a stand on deep spending cuts.

Sen. Lindsey Graham said Sunday that he "will not vote for the debt ceiling increase" unless it's accompanied by spending and entitlement reforms.

On NBC's "Meet the Press," Graham said he wants to see spending back at 2008 levels with cuts in discretionary spending.

"Let's see if we can find bipartisan reform on Social Security before we raise the debt ceiling," Graham said.

Calling the debate a "good opportunity to find common ground," the senator said it was necessary to begin enacting the debt commission's recommendations on entitlement reform "before it's too late."

Noting that President Obama initially came into the tax deal with Republicans "whining," Graham said, "I hope he will continue to embrace the middle when it comes to spending and entitlement reform."

Paul Ryan responded that the rule is necessary because Democrats failed to pass a budget resolution last year.

A proposed House rule granting new powers to the GOP chairman of the Budget Committee has sparked outrage from Democrats.

The Capitol Police force could still face a cash crisis later if Congress fails to act.

The DCCC called GOP Rep. David Schweikert "fiscally reckless" based on an audit of his time as a county treasurer.

President Obama will delay the release of his annual budget proposal by about a week, an administration official confirmed Monday.

Indiana Gov. Mitch Daniels told reporters that if no other Republican serious about tackling the national debt emerges in the 2012 presidential race, he might throw his hat into the ring.